Contributions
Employer
5.00% | Mandatory Provident Fund (MPF) (Maximum taxable income is 30,000.00 HKD) |
1,500.00 HKD | For earnings over 30,001.00 HKD |
Employee
5.00% | Provident Fund (MPF) (Taxable income from 7,000.00 HKD to 30,000.00 HKD) |
1,500.00 HKD | For earnings over 30,001.00 HKD |
Employee Income Tax
2.00% | Up to 50,000.00 HKD |
6.00% | 50,001.00 HKD – 100,000.00 HKD |
10.00% | 100,001.00 HKD – 150,000.00 HKD |
14.00% | 150,00.00 HKD – 200,000.00 HKD |
17.00% | 200,001.00 HKD and over |
Public Holidays Calendar
New Year’s Day
Lunar New Year
Ching Ming Festival
Good Friday
Day following Good Friday
Easter Monday
Labour Day
Day following Labour Day
Birth of Buddha
Day following Birth of Buddha
Tuen Ng Festival
Kong Special Administrative Region Establishment Day
Second Day following Chinese Mid-Autumn Festival
National Day
Chung Yeung Festival
First weekday after Christmas
Second weekday after Christmas
Rizal Day
Minimum Wage
General
The hourly minimum wage is 37.50 HKD.
Payroll
Payroll cycle
The payroll cycle in Hong Kong is monthly, with payments usually being made on the last working day of the month.
13th salary
In Hong Kong, it is customary to pay a 13th salary during the Lunar New Year or at the end of the year.
Working hours
General
Working hours are typically 9 am to 6 pm between Monday and Friday. There are no legislative requirements on maximum working hours except for a young person in industrial settings. A young person is categorized as someone between the ages of 15 to 18. Work hours are limited to 8 a day between the hours of 7 am to 7 pm with a maximum of 48 hours per week.
Overtime
There are no laws on overtime pay, and this usually is stated in either the employment contract or collective bargaining agreements.
Leave
Annual Leave
Employees who have been employed for at least 3 months are entitled to 7 days of paid annual leave. This increases by one day per additional year of employment until the annual leave reaches a maximum of 14 days on the 9th year of employment.
Sick leave
Employees under a definite contract are entitled to paid sick leave. During the first 12 months of employment, employees are granted two paid sick days per month, increasing to four paid sick days per month after one year of service.
Sick pay is calculated based on the rate of 80% of the average daily earnings in the preceding 12-month period, prior to the first day of sickness. If the employee has been employed for less than 12 months, the calculation is based on the average earnings received since the employment start date.
Employees can accumulate sick days throughout their entire employment up to a maximum of 120 days at any given time.
Maternity Leave
A pregnant employee is entitled to 14 weeks of maternity leave, with the potential to increase to 18 weeks with complicated or multiple births if the employee has been employed under a continuous contract for not less than 40 weeks immediately before the commencement of scheduled maternity leave. The maternity leave should commence between two and four weeks before the due date.
The employer pays the maternity payment based on a calculation of four-fifths of their average daily wages (from the past 12-month period up to a maximum of 80,000 HKD) and will be reimbursed by the Government.
Parental Leave
There is no statutory Parental leave in Hong Kong.
Termination
Termination Process
The termination process is standard in Hong Kong and is based on Labor Law requirements unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)
Notice of termination must be in writing and sent to the relevant governmental authorities.
Notice Period
Notice periods within Hong Kong are generally 30 days, although employers can specify longer notice periods within the employment contract.
Severance Pay
In Hong Kong, severance pay is mandatory when applicable and is determined by the employee’s contract terms and length of service. The employer must calculate the Severance pay per the Employment Ordinance (Cap. 57). In general, provided that an employee has been employed under a continuous contract for a minimum period of two years and has not resigned or been summarily dismissed before termination, the employee will be entitled to statutory severance pay.
Statutory severance pay is calculated as two-thirds of the employee’s regular monthly salary rate or two-thirds of 22,500 HKD, whichever is less, for each year of service. The statutory severance payment is subject to a maximum sum of 390,000 HKD.
Probation Period
The probation period in Hong Kong for permanent employees is generally set at between one week and one month. However, it must be stipulated in the employment contract.
VISA
Foreign nationals normally require a visa before entering Hong Kong to take up employment. A local sponsor, usually the employing company, is required to support the employment visa application.
Under the existing immigration policy, a person seeking to enter Hong Kong for employment should possess a particular skill, knowledge, or value experience, which is not readily available in Hong Kong.
Applicants who wish to possess a working visa for Hong Kong need;
a graduate degree unless they are considerably experienced in a specialized field or relevant experience in the position they are applying for.
If the person’s spouse and dependent family also decide to relocate to Hong Kong, they will require dependent visas. A spouse entering Hong Kong on a dependent visa can now take up employment in Hong Kong and no longer requires a separate employment visa if they wish to work in Hong Kong.
VAT
General
The standard rate of VAT in Hong Kong is 0%.
Disclaimer: This article is not a substitute for legal advice. Please always check the official website or seek legal advice before taking action.